| Homebuyer Tax Credit Farce
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| by JD Nutt, IG Web-Editor |
| Fed's entice homebuyers
with the term "credit", reality is homebuyers become
indebted to the IRS for a period of 15 years. |
| Report last updated on
November 7th, 2009 -
Oklahoma City, OK. |
| If you are running to your realtor to
get in on the home loan tax credit, beware! You will be in debt to the
Internal Revenue Service for a period of fifteen (15) years. |
| Somewhat of a zero interest loan is
being extended to offset tax liabilities for first time and repeat home
buyers. The intent is admirable, however in today's society, most marriages
in America fail and the average American will be out of their new home in
less than three (3) years. The majority of homebuyers today in America are
married couples. |
| The Centers for Disease Control recently
reported the number of marriages annually in America was 2,162,000. The
marriage rate was 7.1 per 1,000 total population. The divorce rate was 3.5
per 1,000 population. That's a fifty-fifty bet your marriage will endure
or fail. |
| Then comes the debt obligation after a
marriage is dissolved or the home is sold, or even worse, foreclosed. Being
in debt to the IRS can be a screaming blood curdling nightmare when
required to pay out big interest and penalties on what began as
a zero interest loan. |
| The Housing and Economic Recovery Act of
2008 established a tax credit for first-time homebuyers that can be worth
up to $7,500. For
homes purchased in 2008, the credit is similar to a no-interest loan
and must be repaid in 15 equal, annual installments beginning with the
2010 income tax year. |
| The American Recovery and Reinvestment
Act of 2009 expanded the first-time homebuyer credit by increasing
the credit amount to $8,000 for purchases made in 2009 before Dec. 1. |
| If you are still wanting to make a go of
it, visit "The
American Recovery and Reinvestment Act of 2009 Information Center"
at the IRS's website. |
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| Report Source(s): |
| http://www.cdc.gov/nchs/fastats/divorce.htm |
| http://www.irs.gov/newsroom/article/0,,id=204671,00.html |
| http://www.irs.gov/newsroom/article/0,,id=204335,00.html |
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